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Futures Weekly Wrap (May 16th-May 22nd): Cryptos Are on the Brink of a Volatile Time

2022-05-24 06:45

Chart of the Week

Building Stable Support

  • Transaction history shows that Bitcoin has formed a stable support floor. Roughly 1,350,194 addresses acquired more than 926,620 BTC at an average price of $29,814.67.
  • Bitcoin would have a great chance of rebounding as long as it is able to hold above $29,814.67 because on-chain data reveals no significant resistance ahead. The most considerable supply wall sits around $34,434.10 where 386,280 addresses hold over 243,403 BTC.

Bitcoin at Crossroads

  • At about $30,284.00 on Sunday, May 22nd, Bitcoin continues to consolidate within a tight price range.
  • From a technical perspective, a death cross between the 50- and 200-day moving averages developed on BTC’s three-day chart. Such a bearish formation suggests that despite the probability of a rebound, the gains could be limited to $38,531.60 as Bitcoin’s price grows weaker. A decisive close below $26,828.20 can result in a downswing to $20,732.70.
  • On Binance Futures, the BTCUSDT Long/Short Ratio hit 1.91 on May 22nd. Traders remain optimistic about the future price action as 65.85% of all accounts with an opened position in Bitcoin are net-long.

Weekly Market Mover

* Note: DEFIUSDT is a composite index perpetual contract that consists of a basket of DeFi protocol tokens listed on Binance. It is calculated using weighted averages of DEFI tokens’ real-time price on Binance and is denominated in USDT.
Find out more about DEFI Index and trade DEFIUSDT.

Highlights From This Week

Take Part in This Week’s Activities

  • Binance Futures Grand Tournament - Binance Futures is hosting the Futures Grand Tournament with a prize pool of 1,800,000 BUSD tokens, 1,400 limited edition NFTs, and unlimited vouchers. Register now and make sure to participate in the Futures Grand Tournament's social media campaign to win 200 BUSD!
  • 10 BUSD For You! - Binance Futures launched a giveaway to give 15,000 new users and existing users who have not traded since Feb. 22nd a 10 BUSD Futures Bonus Voucher on a first-come, first-served basis.
  • Interest Rate Reduction - Binance Margin launched a promotion to reduce interest rates for BTC, ETH, BUSD and USDT. Users may enjoy discounted annual interest rates as low as 0.8% with the mentioned assets during the promotion period.
  • Content Challenge - Binance Futures launched a content challenge asking creatives to produce videos, articles, or infographics about why crypto holders should consider trading futures on our platform. Submit your content now for a chance to win 300 BUSD.

Food For Thought

  • BUSD: All You Need To Know About the Stablecoin - Stablecoins are an important crypto asset class that has been gaining popularity with traders and investors alike. One of the few stablecoins that provides monthly audits is BUSD, making it a highly regulated asset. Learn about what BUSD is used for, the advantages BUSD has to offer, and the advancements it has made in the space.

Trade Our New Listings

  • Cross and Isolated Margin - Binance added DYDX, FTT, KAVA and VOXEL trading pairs on Cross Margin, and a new TROY trading pair on Isolated Margin.
  • BUSD Contracts - Binance Futures will launch BUSD-Margined GAL, FTM, DODO, GALA, and TRX Perpetual Contracts with up to 20x leverage. Make sure to turn on Multi-Asset Mode to trade BUSD contracts with USDT.

New Updates

  • Delisted Contracts - Binance Futures will conduct automatic settlement on the AKRO and DODO USDⓈ-Margined Perpetual Contracts, and delist these contracts.
  • Tick Size - Binance Futures adjusted the minimum change in the unit price of the CTKUSDT and DARUSDT Perpetual Futures Contracts.
  • TWAP Trading Algorithm - With the Time-Weighted Average Price (TWAP) trading algorithm, API users on USDⓈ-Margined Futures can programmatically disperse large orders into smaller quantities, automatically executing these orders at regular intervals to minimize the impact on the market prices. Try it now!
  • Liquidity Analysis - Binance Futures launched the Liquidity Analysis feature on the Derivatives Portal for VIP users. This section displays customized charts (Cost To Trade, Bid-Ask Spread, Book Depth) for selected USDⓈ-Margined Futures and COIN-Margined Perpetual Contracts on Binance Futures.

News Roundup

  • Extended Losses - Bitcoin saw seven straight weeks of losses for the time first in its history amid a downturn in broader markets, stricter crypto regulations, waning retail interest, and systemic risks in the crypto space. (Trade BTCBUSD)
  • Transitioning to PoS - Ethereum’s Ropsten public testnet to undergo a “Merge” next month. Switching the blockchain from PoW to POS is a complex change, which requires multiple tests before the upgrade is finally deployed on the mainnet. (Trade ETHBUSD)
  • Supply Chain - Big Four consulting firm EY unveiled its blockchain-based supply chain manager built for the Polygon network aimed at solving bottlenecks in product traceability. (Trade MATICUSDT)
  • No Crypto Winter - Concerns of a so-called crypto winter are “unfounded” because the industry is an “emerging tech asset class and the tokens that power the ecosystem trade like high growth, speculative risk assets,” according to Bank of America.
  • $600 Million Fund - Andreessen Horowitz (A16z) is launching a new $600 million fund that will exclusively invest in the gaming and metaverse industries, specializing in three primary areas: game studios, consumer applications that promote player communities, such as Discord, and the gaming infrastructure providers.
* Note: Binance encourages our users to trade responsibly. Trading can be engaging and fun, but trading is a serious business, and it can lead to financial and emotional distress. Trading derivatives carries risk, and cryptocurrencies and other digital assets often have high levels of price volatility.
Disclaimer: The information provided in this section doesn't represent any investment tips or Binance's official position.
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